Perspective Newsletter


If you would like to receive Perspective - our monthly newsletter – which brings you all of our latest news and views as well as interviews and opinion pieces then please follow the link below...

Read more

Failure to prioritise procurement 'will cost businesses'

11 January 2012

Businesses have been warned that a failure to place the proper emphasis on procurement issues could create financial problems further down the line.

Procurement consultancy Efficio said companies that cut back on their purchasing staff and capabilities are likely to see the cost of their third-party supplies increasing over the next 12 to 18 months.

Loss of procurement resources is typically associated with a six to ten per cent rise in costs for indirect categories and two to five per cent for direct categories, which could lead to severe business disruption.

Efficio vice president Juraj Priecel said: "When procurement professionals are no longer there to keep an eye on contracts, deal with suppliers day-to-day, renegotiate deals where necessary and monitor the supplier markets, cost increases will result as night follows day."

The consultancy noted that conversely, increased investment in procurement can lead to long-term savings of millions.

Last month, a report from Everest Group revealed that procurement outsourcing among global businesses is likely to increase in 2012.

Odgers Interim are UK leaders in Interim Management solutions for the Public Sector. We have offices in London, Birmingham, Leeds, Manchester, Glasgow, Aberdeen and Cardiff as well as over 50 offices globally. We are the only Interim Management providers who are part of a top tier international executive search firm. We work closely with our executive search colleagues to find candidates who can offer short term solutions with long term benefits.

Categories: Functional Practices


No comments have yet been posted, be the first to comment by using the form below: